Motorola 2005 Annual Report Download - page 12

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Our Facilities/Manufacturing
Our headquarters are located in Libertyville, Illinois. Our major facilities are located in Libertyville, Illinois;
Flensburg, Germany; Tianjin, China; Singapore; Jaguariuna, Brazil and Malaysia. During the year, we ceased
manufacturing and/or distribution in our facilities in Plantation, Florida and Seoul, Korea. We also maintain an
interest in a joint venture in Hangzhou, China.
We also use several electronics manufacturing suppliers (""EMS'') and original design-manufacturers (""ODM'')
to enhance our ability to lower our costs and deliver products that meet consumer demands in the rapidly-changing
technological environment. On a unit basis, approximately one-third of our handsets were manufactured (either
completely or substantially) by non-affiliated EMS and ODM manufacturers.
In 2005, our handsets were primarily manufactured in Asia. We expect this to continue in 2006. Our largest
manufacturing facilities are located in China, Singapore, Brazil and Malaysia. Each of these facilities serves multiple
countries and regions of the world. During the year, we stopped manufacturing handsets in Korea. In addition to
our own manufacturing in Asia, the EMS and ODM manufacturers we utilize primarily manufacture in Asia.
Government and Enterprise Mobility Solutions Segment
The Government and Enterprise Mobility Solutions segment (the ""segment'') is a leading provider of:
(i) mission-critical wireless communications systems for government and public safety markets worldwide,
(ii) business-critical wireless devices, networks and applications focused around mobile computers and the mobile
office for world-class enterprise organizations, and (iii) electronics and telematics systems that enable automated
roadside assistance, navigation and advanced safety features for automobile manufacturers worldwide. In 2005, the
segment's net sales represented 18% of the Company's consolidated net sales.
Principal Products and Services
Government: We design, manufacture, sell, install and service two-way radio, voice and data communications
products and systems to a wide range of public safety and government customers worldwide. Other offerings
include: biometrics, integrated information management, computer-aided dispatch systems and records management
systems.
Enterprise: We provide business-critical wireless mobility devices, networks and applications that enable an
enterprise customer to seamlessly connect its people, assets and information. Enterprise customers include utility,
courier, transportation, field services and other companies with disseminated workforces. Offerings include: mobile
office devices, rugged mobile computing handhelds, private and public business communication networks,
enterprise-grade wireless security systems, and end-to-end systems and applications that deliver enterprise mobility.
Automotive: We deliver embedded telematics systems that enable automated roadside assistance and
advanced safety features for automobiles. Additionally, we provide integrated electronics for the powertrain, chassis,
sensors and interior controls within the vehicle.
The segment's products are sold directly through our own distribution force or through independent
authorized distributors and dealers, commercial mobile radio service operators and independent commission sales
representatives. The segment's distribution organization provides systems engineering and installation and other
technical and systems management services to meet our customers' particular needs. The customer may also choose
to install and maintain the equipment with its own employees, or may obtain installation, service and parts from a
network of our authorized service stations (most of whom are also authorized dealers) or from other non-
Motorola service stations.
Our Industries
Government: Natural disasters and terrorist-related worldwide events in 2005 continued to place an emphasis
on mission-critical communications systems at the local, state and nationwide levels. As a global leader in mission-
critical communications, we expect to continue to grow as spending increases worldwide for mission-critical
communications systems. To date, Motorola has been awarded contracts for digital, statewide interoperable
mission-critical networks in the U.S. Additionally, the segment has received significant contracts throughout many
international markets. Motorola continues to be well-positioned to serve the increased worldwide demand for these
systems in 2006 and beyond.